Falklands : Hydrocarbons Daily Record (16/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 16.05.2006 (Article Archived on 30.05.2006)
Cyprus now says it could have reserves of hydrocarbons south of the island.
HYDROCARBONS DAILY RECORD: TUESDAY, 16 MAY 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 16 May 2006 Light Sweet Crude was $69.53 per barrel and Brent Crude at $69.78 per barrel. The FSTE 100 was up 12.1 ending the day at 5846. The Dow ended the day at 11,419.57
TRENDS:
Supply seems to be meeting demand with reserves growing. Rhetoric and corresponding nervousness has died sown since Libya and the United States have resumed diplomatic relations.
DEVELOPING FACTORS:
(Cyprus)
Data from initial seismic surveys shows that there are reserves of hydrocarbons south of Cyprus. Norway’s Petroleum Geo Services (PGS) were commissioned to do the initial seismic. Cyprus and Egypt have signed a deal governing future exploration along the median line of the sea area separating the two countries should reserves be found in the area.
(Africa)
Egypt could benefit if hydrocarbons are found in the seabed between it and Cyprus.
The major story, however, is Libya and the resumption of diplomatic relations with the United States. It is thought that the deal will be beneficial to both Libya and the United States regarding hydrocarbons.
(Latin America)
Bolivia has demanded three Spanish Banks to meet Government demands to surrender shares it administers for a public pension fund within three days. President Evo Morales says his government won’t pay for the shares because they belong to the Bolivian people. The banks say they will not give up the shares for free.
Ecuador is revoking the Occidental contract. The reserves produce 100,000 barrels a day. It is thought that the contract is being revoked as a result of a dispute between the Government of Ecuador and Occidental and not a general trend for that country to nationalise reserves.
In general, the nationalisation of assets in Bolivia and Venezuela has not affected output.
(Falklands)
The Mineral Resources Committee met today and discussed the Health and Safety regulations and inspection of any oil rig that might come to the Falklands. According to Agriculture and Minerals Director, Mrs. Phyl Rendell a rig has not yet been identified but it is hoped the regulations and legislation will be updated by the time the inspection takes place. In accordance with user pays, Desire will have to pay the Health and Safety Executive for the inspection.
Tim Bushell, FOGL’s Chief Executive gave a presentation to oilbarrel.com last week. Oilbarrel.com links oil companies with investors and they had a lot to consider following Mr. Bushell’s presentation. He said that the Loligo prospect – a large Tertiary fan system – could hold as much as 3.3 billion barrels and that the lower Cretaceous Endeavour and Endurance prospects could hold 710 million barrels and 730 million barrels respectively. According to Mr. Bushell, FOGL is planning more 2D and 3D seismic and is also keen to do electromagnetic seabed logging.
FOGL’s report and presentation can be seen at: http://www.oilbarrel.com/home.html.
THE MARKET
Investors generally were happy to see to the market steady itself following the losses of the past couple of days. After a nervous start, share prices moved ahead with the FTSE 100 index rising 12.1 to 5853.4. But investors were braced for opening losses on Wall Street this afternoon.
Desire Petroleum closed the day 1p or 2.4% down on the day to 40.25p
Falklands Oil and Gas closed the day 1p or 0.8% down on the day to £1.32p
Rockhopper Exploration closed up 0.5p or 1.7% on the day to 30p
Border and Southern closed down 1.5p or 3.2% down on the day to 46p
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